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Clients' money - held?

Does the firm hold clients' money?

Clients' money can be defined as any money held or received by the firm, which does not solely belong to the firm. This is money held in trust by a member on behalf of third parties and which is not due to the member or his firm (received by cash, cheque, bankers' draft, electronic transfer).

Examples of clients' money are: tenant's deposits, rents, service charges, interest and proceeds from sales at auction etc. If you hold fees in advance of completing work this may also be categorised as clients' money.